Speaking to reporters here, he said, with this India would be entering into a clean coal technology era.
The 6.25Mw integrated gasification combined cycle plant (IGCCP), which is a demo plant, would be converted into a power generating unit. The initial investment is expected to be around Rs 125 crore. The plant is expected to start generating power by September 2011 and its annual consumption of coal would be 50,000 tonnes.
He added that a task force had been constituted comprising senior executives of Bhel and NTPC to decide about the additional investment.
Meanwhile, the Andhra Pradesh Power Generation Corporation (APGenco) has entered into an agreement with Bhel to set up a similar plant in Vijayawada. The 125Mw capacity plant will involve an investment of around Rs 950 crore. Of the total, Bhel is expected to invest Rs 420 crore.
Similarly NTPC and Bhel are planning to establish a 250Mw power plant at Auriya in Uttar Pradesh, where NTPC was already running a gas-based thermal plant with a capacity of 640 MW, he said.
Ramesh also said that negotiations were on with Reliance Power for a 4,000Mw power project in Andra Pradesh.
